Download Please read this entire syllabus completely and thoroughly!!!

Cosumnes River College
Economics 302: Principles of Macroeconomics
Spring 2017
Lecture: Monday and Wednesday 9:00-10:20 a.m., Learning Resource Center 107 (CRN #14118)
Course Web Page: http://www.csus.edu/indiv/d/dowellm/Econ302
Instructor: Michael Dowell
Office: Room BS-143
email: [email protected]
or [email protected]
Office Hours:
Wednesday 8:00-8:45 a.m.
and by appointment
Please read this entire syllabus completely and thoroughly!!!
I view this syllabus as a contract between you and me. I have devoted a significant amount of time
and effort to developing it. You should consider it to be the ground rules. "I didn't read the syllabus"
is not an acceptable excuse for missing an exam, problem set or other assignment, overlooking a
reading, sending me an email that I ignore because it is in improper form, etc.
Catalog Description: This course is a graphical and functional analysis of the economy as a
whole. It focuses on the economy's well-being, problems, and possible solutions. Major topics
include: basic economic analysis, demand, supply, and equilibrium in a market; macroeconomic
sectors, goals, and problems (unemployment, inflation, business cycle, and government budget
deficit); the economy's output, income, and price level; aggregate demand, aggregate supply, and
equilibrium; and macroeconomic policies (fiscal and monetary). Time permitting, related topics
such as international trade, international finance, and economic growth may also be discussed.
Course work includes doing arithmetic problems, solving algebraic equations, and graphing
straight and curvilinear lines.
Prerequisite and Advisory: Prerequisite: MATH 100; or MATH 102; or one year of High School
Elementary Algebra with a grade of C or better; or equivalent skills as determined through the assessment
process.
Advisory: MATH 120 or MATH 125 with a grade of "C" or better; or one full year of High School
Algebra II with grades of "C" or better in each semester; or equivalent skills demonstrated through the
assessment process.
What this all means is that you need to be proficient with basic algebra. If you are not, you should not be
in this class as it will be virtually impossible for you to pass without these skills. If you have doubts
regarding your preparation, you should see me during the first week of class. If you have completed the
prerequisite through any means other than completing the relevant Los Rios classes, you need to
bring me evidence of this during the first week of class.
Expected Workload: The college catalogue provides the following definition of a unit of work:
College work is measured in terms of the semester “unit.” In recitation/lecture courses, one hour
in the classroom and two hours of study preparation per week constitute a unit of work.
Since this is a 3-unit course, this means that the average student must anticipate devoting nine hours per
week to this class in order to pass. Stronger students will likely be able to succeed devoting a bit less
time, but weak students will need to devote even more time to the class.
Principles of Macroeconomics: Syllabus
Professor Dowell
Page 1 of 8
Spring 2017
Readings: There will be two sources of assigned readings for this course.
• The required textbook for the class is Macroeconomics: Principles and Policy,13th edition, by by
William J. Baumol and Alan S. Blinder. The ISBN number for the loose leaf version available
through the campus bookstore is 978-13-0561758-2. You are also free to obtain the book from
any other source of your choice, though be sure to get the correct book (Macro, not
Microeconomics and a current edition). This book is designated “B&B” in the class schedule.
• We will also use a series of short articles dealing with a number of topics. These will be posted
on line and linked up through the course web page. Specific assignments will be announced in
class and/or through email.
The last pages of this syllabus contain a reading list indicating textbook reading assignments, problem set
due dates and examination dates. An updated version of this reading list will be posted on the course web
page and will include any change in textbook reading assignments and links to additional short readings.
Note though that problem set due dates and examination dates will not change.
Scope of the Course: Economics 302 is designed to introduce you to the most important topics in
macroeconomics. Specifically we will discuss in detail the topics of unemployment, inflation, monetary
and fiscal policy, and economic growth. Through the careful consideration of these topics you will leave
the course with a greater appreciation and understanding of the economic world in which we live. A
primary goal of the course is to enable you to read articles in daily newspapers and business publications
with the ability to understand and critically evaluate the content and economic arguments being made.
By the end of the course you should have developed an understanding of the major economic institutions,
the functioning of markets, and the challenges faced in using economic policy to influence the levels of
employment, output, inflation and the rate of economic growth.
There will be a significant number of definitions to learn in this course and some math as well. The vast
majority of the concepts covered though will require you to think through relationships and be able to
analyze problems, recommend solutions, and explain exactly how they might work, using written
language as well as graphs and algebra. Hence, you will be expected to do some simple algebra and make
use of graphs to summarize, illustrate and explain the key concepts and relationships. Throughout, the
most important learning and the emphasis on the exams will be for you to be able to explain, understand,
and apply economic reasoning and analysis to carefully and thoroughly answer the question at hand.
Student Learning Outcomes and Objectives (from the course curriculum):
Upon completion of this course, the student will be able to:
SLO 1: Describe and apply basic economic principles and concepts to macroeconomic issues. This
includes the ability to:
• Analyze graphical and numerical representations of resource allocation in the presence of
scarcity.
• Analyze graphical and numerical representations of a macroeconomic equilibrium using the tools
of aggregate supply and aggregate demand analysis.
SLO 2: Demonstrate the use of numerical methods to quantify common terms used in macroeconomics.
This includes an ability to:
• Calculate GDP and economic growth rates.
• Calculate unemployment rates.
• Calculate inflation rates using a price index.
SLO 3: Demonstrate the ability to think critically and analyze solutions to major macroeconomic
problems including Economic (Growth) Decline, Unemployment and Inflation. This includes an
ability to:
• Analyze the strengths and weaknesses of major macroeconomic policy tools.
Principles of Macroeconomics: Syllabus
Professor Dowell
Page 2 of 8
Spring 2017
SLO 4: Discuss the global nature of macroeconomic issues. This includes an ability to:
• Describe the common features of international trade as it is related to GDP.
• Analyze different international trade theories and their implications for specialization.
Students will be expected to demonstrate attainment of the learning objectives stated above as well as
mastery of the material presented throughout the semester through regular homework assignments and in
class exercises, short tests and a comprehensive final examination.
Announcements: Announcements regarding the class may be sent by email and may contain links to
additional readings from current news sources. These readings are to be considered assigned and
required readings for the course and will be fair game for exams. Be sure that you have activated
your student Gmail account as this will be the primary way I and everyone else associated with Loa
Rios Community College District communicates with you. You should check this email every day!
E-mail Communication and Etiquette: The best way to contact me outside of class and office hours is
via email using either of the email addresses listed above. (I will generally see emails sent to my Sac
State email somewhat sooner.) You should view your e-mail as a professional business communication
in which you are trying to impress me with your intelligence and ability to do well in my class, not as a
text message to one of your friends or classmates. In the interest of achieving this goal, emails sent to me
must have “Econ 302” in the subject line. Additionally, please address me in a more respectful manner
than “Hey”. I also expect you to use proper grammar, capitalization and punctuation in your message and
that you sign your emails with both your first and last names. Emails that don’t meet these minimum
expectations likely will be ignored.
Course Requirements and Grading:
Attendance: You are expected to attend lectures regularly and will be encouraged to do so with short inclass assignments consisting of response papers, pop quizzes and in class exercises which will be
unannounced and will account for 15% of your course grade. There will be no make-ups offered if you
miss these short assignments, though your three lowest scores will be excluded. I reserve the right to
drop you from the course if you miss more than three CONSECUTIVE short in-class assignments.
Short In-class Assignments
Short in class assignments will include the following and will in total count for 15% of your course grade
with your three lowest scores being dropped.
Response papers will require you to respond to one of the following questions:
a. What is the most important thing you learned today?
b. What is the muddiest point still remaining at the conclusion of today’s class?
Response papers serve as an incentive for your attendance and as means to gauge comprehension
of the material. You will receive credit simply for completing them and they will not be returned.
In class exercises will be short exercises that you work on individually or in groups which will be
graded on the same basis as response papers and will be returned. As with response papers, in
class exercises will generally not be returned.
Pop quizzes will cover assigned readings or material discussed in lecture and may take place at any
time during class. They will be graded on a check/check-minus/zero basis similar to that used for
problem sets (see below) and returned. For each pop quiz you must use an 8-1/2 x 11” sheet of paper
and follow specific instructions given in class. If I come to believe students are not completing
assigned readings, I will quiz you on the readings before they are discussed in class.
Principles of Macroeconomics: Syllabus
Professor Dowell
Page 3 of 8
Spring 2017
Problem Sets
Problem sets will be assigned throughout the semester and will be handed out in class and posted on the
course web page, generally one week before they are due. You must follow all instructions to receive
credit. Problem sets must be turned in at the beginning of class on the day they are due. If you will
be absent, you should have a class mate turn in your work as late problem sets will be accepted! I
also do not accept electronic submissions. I will answer questions and go over specific problems during
lecture time, though I will not answer questions before collecting problem sets on the day they are due.
To get your questions answered you need to think and plan ahead! Solutions will be posted on the course
web page. There will be only three marks: A mark of ‘check’ indicates considerable effort has been
demonstrated on all questions with generally good, though not necessarily entirely correct overall results
and represents full credit or a score of 100%. A mark of ‘check minus’ represents substantial effort, but
with incomplete results and represents a score of 70%. A mark of ‘zero’ indicates either that no problem
set was submitted or that what was submitted shows at best minimal effort with unacceptable results and
represents no credit. Please note though that a mark of ‘check’ is not a green light accepting all of your
answers as 100% correct. It is you responsibility to check them against the answer key and ask for help if
you need clarification. Your lowest problem set score will be dropped with the remaining seven
collectively accounting for 14% of your course grade. Due dates are indicated on the course schedule.
For those problems sets due the class session before an exam, you may want to make a copy so that you
will have it available to study.
Short Tests and Final Examination
There will be four short tests over the course of the semester and a final comprehensive examination. The
short tests will consist of multiple choice, short answer, short essay and problem solving questions. Each
will cover the assigned readings, problem sets and material presented in lectures as indicated on the
course schedule and will account for 12.5% of your course grade. I will give you general guidelines of
what to expect the class session before each and will allow time for questions and review. I will not
provide a printed study guide that tells you exactly what you need to know though. You will have fifty
minutes to complete each short test at which point you will turn in your scantron and written answers but
will keep the multiple choice questions. We will then go over the test in the remaining class time. The
final examination will consist entirely of multiple choice questions and will cover material from the entire
semester.
For each test or exam you need to bring a Scantron Form 882, a number 2 pencil and a basic nongraphing calculator. Neither electronic devices of any other kind nor any notes are allowed during tests or
exams. If you are caught using any prohibited electronic devices or notes you will be considered to be
cheating and will receive a failing grade on the test or exam! Individual scores will be scaled relative to
the highest score on a given test or exam, possibly excluding outliers. For example, if excluding outliers,
the highest raw score is 92 and you earn a score of 69, I will divide 69 by 92 to arrive at your percentage
score of 75%, indicating a grade of C.
Tests and exams will be held according to the course schedule included in this syllabus. These dates are
firm and will not be changed, so plan accordingly. There will be no “make-ups” given. In the event a
student misses a short test for “serious and compelling reasons” and has supporting documentation, the
weighting for that test will be divided equally among the remaining tests and the final exam. “Serious
and compelling reasons” would generally include serious illness or injury of yourself or an immediate
family member, death of a family member or absence made necessary by a campus sponsored events or
military service. I shall have sole discretion in determining whether or not the reasons for missing a
midterm examination are “serious and compelling.” Should this situation arise, I must be notified by
9:00 a.m. on the day of the test by email at the very latest and documentation deemed acceptable by
me must be provided as soon as practical. If you miss more than one short test, regardless of the
reason, you will receive grades of zero on the additional missed tests. Regardless of your grade
going into the final exam, if you do not take the final you will receive an “F” in the course.
Principles of Macroeconomics: Syllabus
Professor Dowell
Page 4 of 8
Spring 2017
Grades from individual components will count toward your final grade as follows:
Problem Sets (best 7 of 8)
14%
Response Papers/Pop Quizzes/In-Class Exercises (excluding lowest three)
15%
Four Short Tests (12.5 % each)
50%
Final Exam
21%
Final course grades will be assigned based on the percentage of the total possible points you earn and
according to the following scale:
90-100%
60-69.99%
A
D
80-89.99%
Less than 60%
B
F
70-79.99%
C
A Few Words of Caution
Experience has shown that Economics is not a subject that you should let slide until the last minute. An
economics course is similar to a math course in that much of the material is cumulative, with each day’s
lesson depending on comprehension of the material that has come before. I therefore urge you to attend
class on a regular basis and actively participate. Experience has shown that students whose attendance is
irregular usually do poorly. I also urge you to keep up to date on the reading and assignments and to ask
questions in class or come see me during my office hours if you are having difficulty. Forming study
groups is also a good way to learn the material. If you are having difficulty, PLEASE come see me sooner
rather than later. If you do keep up with the material, many of you can do well in the course. Falling
behind is, however, the surest way to make this class a difficult and unpleasant experience.
Policies
Academic Honesty: Academic honesty is expected. In fairness to the many students who work hard and
put in an honest effort, those who cheat will be treated most harshly as to do otherwise would devalue all
honest student’s hard work. I encourage students to discuss economics and the class material together
(outside of class) and to help each other in solving problems and coming to understand the material. In
fact, you will find this class much easier if you form study groups. Nevertheless, work submitted for a
grade must ultimately be the work of the individual student – not copied from another student or from any
other source. It is my policy to assign a grade of zero for any homework, problem set, quiz or exam on
which you cheat. I also pursue all appropriate disciplinary measures provided by Los Rios College
District policies.
Drop Policy: If you decide to drop the class, you are responsible for doing so with the Registrar’s Office.
Do not assume that I will drop you as failing to officially drop the class will result in a grade of F.
Handouts and Return of Student Work: In the event that there are handouts, I will only hand them out
once. If you miss class, you will need to get any handouts for that day off the web page or from a
classmate. I also only bring exams or other student work for return once. If you are absent that day, you
need to come to my office to pick up your work.
Talking in Class: Please don’t talk to each other during class. If you have questions, ask me, not the
student sitting next to you. Talking in class is rude and distracting, both to me and to other students.
Cell Phones, Pagers and Lap Top Computers: Turn off your cell phones and pagers or place them in
silent mode. Do not read, respond to or send text messages during class. Due to the negative externalities
they impose, lap top computers Tablet PCs, IPads, etc. are not allowed in class. Students who are
discovered to be engaging in any of these activities or using these devices will be asked to leave and
will lose possible credit from quizzes or response papers for that day’s class. Repeated violations
may be deemed disruptive behavior in which case you will be dismissed from the class.
Principles of Macroeconomics: Syllabus
Professor Dowell
Page 5 of 8
Spring 2017
Punctuality: Please do your best to arrive for class on time and plan on staying for the entire class
session. If you must arrive late, do so as inconspicuously as possible. If you need to depart early for a
specific reason, let me know before class starts. If you make a habit of leaving early though, I will ask
that you not return.
Recording of Lectures: Audio and/or any kind of video recording of lectures is prohibited and is a
violation of federal copyright laws unless you have a learning disability that requires such recording (see
below). In the event you do have a learning disability requiring recording, all recordings must be used
only by the person making them and must be destroyed at the end of the semester.
Selling or Posting of Notes: It is a violation of state law for you to either sell or publicly post lecture
notes from my class. You are encouraged to freely (that means without monetary compensation) share
notes amongst yourselves. You may not in any way profit financially from notes taken in my class
though nor may you publicly post them on any web site.
Accommodations for students with disabilities: If you have a disability and require accommodations,
you need to provide appropriate documentation from the College as soon as possible.
Tentative Schedule of Readings and Assignments
The readings on this schedule are tentative and subject to change. I also may add a number of short
readings as I come across new material that is relevant to the class. Any additional readings will be
distributed in class or via email. Any other changes will be announce in class and via email with and a
new schedule will be posted on the course web page if appropriate. The exam dates and due dates for the
problem sets are firm though and will not be changed. Please not the reading assignments carefully. All
assigned readings are to be completed prior to coming to class on the indicated dates. All assigned
readings may be included on the exams.
I. Basic Tools and Introduction to Economics
Lect.
2
Topics
1/18/17 Introduction to the Class and Basic Economic
Concepts; Economic Theories and Models
Review of Graphs and Graphing; Algebra
1/23/17 Review; Brief Overview of the U.S. Economy
3
Scarcity and Choice: The Production
1/25/17 Possibilities Model; Economic Efficiency
4
1/30/17
1
5
Date
2/1/17
Basics of Supply and Demand
Equilibrium and Algebra of Supply and
Demand
Assignment
B&B, Chapter 1, pp. 3-12
B&B, Chapter 1 Appendix, pp. 12-16
and Chapter 2
B&B, Chapter 3
B&B, Chapter 4, pp. 55-64
Problem Set 1 Due
B&B, Chapter 4, pp. 64-69 and
Handout on Algebra of Supply and
Demand
II.A. Macroeconomics: Policy Goals, Data and Measurement – Part I
6
7
2/6/17
Macroeconomics, GDP, The Circular Flow and
National Income Accounting; Brief Overview
of Macro History
National Income Accounting Continued
2/8/17
Principles of Macroeconomics: Syllabus
Professor Dowell
B&B, Chapter 5, pp. 81-89
B&B, Chapter 8, Appendix, pp. 162167
Problem Set 2 Due
Page 6 of 8
Spring 2017
Monday, February 13, 2017
First Short Test
(Covers Lectures 1-7 with greatest emphasis on 1-6)
II.B. Macroeconomic Policy Goals, Data and Measurement – Part II
8
9
10
11
The Goals of Macroeconomic Policy: The
Aggregate Production Function and Economic
Growth
2/20/17 Holiday – No Class
2/22/17 Measurements and Costs of Unemployment
2/27/17 Inflation: Causes and Consequences
Inflation: Measurement
3/1/17
2/15/17
B&B, Chapter 6, pp. 101-107 and
Chapter 7
B&B, Chapter 6, pp.107-112
B&B, Chapter 6, pp.113-121
B&B, Chapter 6, Appendix, pp. 122125
Problem Set 3 Due
III.A. Aggregate Demand – Part I
12
3/6/17
13
3/8/17
Consumer Spending and Consumption; A First
Look at Investment and Net Exports
Demand Side Equilibrium and the Keynesian
Cross; The Aggregate Demand Curve;
Monday, March 13, 2017
B&B, Chapter 9, pp. 169-179
Problem Set 4 Due
Second Short Test
(Covers Lectures 7-13 with greatest emphasis on 7-12)
III.B. Aggregate Demand – Part II
The Multiplier; The Algebra of Demand Side
3/15/17
14
Equilibrium
The Multiplier Continued: Variable Imports
3/20/17
15
IV. Aggregate Supply and Equilibrium
Labor Markets: The Foundation of Aggregate
Supply
3/22/17
16
17
B&B, Chapter 8
The Aggregate Supply Curve and Equilibrium;
3/27/17 Inflationary and Recessionary Gaps and
“Automatic” Adjustment
B&B, Chapter 9, pp. 179-186, Chapter
9 Appendix A, pp. 188-189
B&B, Chapter 9, pp. Appendix , pp.
190-192
B&B, Chapter 10, pp. 193-198 and
Handout on Labor Markets and
Potential Output
Problem Set 5 Due
B&B, Chapter 10, pp. 198-212
V. Fiscal Policy
18
3/29/17
19
4/3/17
The Need for Policy: A Brief Overview of a
Volatile Economy; Fiscal Policy
Fiscal Policy: Multipliers Revisited
Budget Deficits
Principles of Macroeconomics: Syllabus
Professor Dowell
B&B Chapter 5, pp. 89-98 and Chapter
11, pp. 215-228
B&B Chapter 11, Appendix A and
Appendix B, pp. 228-234 and Chapter
16
Problem Set 6 Due
Page 7 of 8
Spring 2017
Wednesday, April 5, 2017
4/10/17
4/12/17
Third Short Test
(Covers Lectures 13-19 with greatest emphasis on 13-18)
Spring Break – No Class
Spring Break – No Class
VI. Monetary Policy
4/17/17 Money, Banks and Money Creation
20
4/19/17 The Fed and Monetary Policy
21
4/24/17 The Fed and Monetary Policy Continued
22
The 2008 Financial Crisis
4/26/17
23
24
5/1/17
Policy Mix and the Inflation-Output Tradeoff
VII. International Macro
5/3/17 The International Monetary system
25
Exchange Rates and the Macroeconomy
5/8/17
26
B&B, Chapter 12
B&B, Chapter 13, pp. 259-268
B&B, Chapter 13, pp. 268-278
B&B, Chapter 14
Problem Set 7 Due
B&B, Chapter 15 and Chapter 17, pp.
335-346
B&B, Chapter 19
B&B, Chapter 20
Problem Set 8 Due
Wednesday, May 10, 2017
Fourth Short Test
(Covers Lectures 19-26 with greatest emphasis on 19-25)
Monday, May 15, 2017
8:00 a.m. – 10:00 a.m.
Comprehensive Final Examination
(Covers Lectures 1-26)
Principles of Macroeconomics: Syllabus
Professor Dowell
Page 8 of 8
Spring 2017